News

Ten years on from the credit crunch: how have prime London property prices fared?

There has been strong double-digit price growth across prime London property markets over the past ten years, reflecting the city’s appeal following the global financial crisis.

In similar fashion to most other asset classes, there was an immediate decline in prices as the effects of the credit crunch took hold, with values falling 24% between March 2008 and March 2009.

However, unlike most other markets, prices in prime central London began to rise within six months of the collapse of Lehman Brothers as a result of city’s safe-haven appeal.

Values rose 20% in the year to March 2010 in prime central London, and increased by a total of 73% in the six years to March 2015.

In prime outer London, prices rose 52% over the same six-year period.

More modest growth has been recorded since the start of 2015 due to the effects of higher rates of stamp duty.

This explains the relative out-performance of lower-value properties over the ten-year period, with the strongest growth of 63.1% being recorded for sub £1million properties in prime central London.

Source – Knight Frank, 2017

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